The Canovo Report
Posts
Canovo Group Newsletter - November 18, 2022

Canovo Group Newsletter - November 18, 2022

Small Scale Multifamily Sales Slow (Chart), Surprising 2023 Prediction from NAR Economist

November 18, 2022

Snapshot: Small Scale Multifamily Active Status Listings Up 84% Compared to Last Year.

While total listings for small scale multifamily is up 5% compared to this same time last year, there has been a dramatic shift in the number of those listing that are actually selling.

In the chart below you’ll notice an 84% increase in the number of listings in the “Active” status and 60% decrease in the number of listing in the “Under Contract” status.

With interest rates around 3% higher today than last year, buyers are needing discounted pricing to make deals pencil. Meanwhile many sellers are still trying to hold on to the pricing they could have achieved 12 months ago. Those that are successfully selling are coming to terms with the current market conditions and reducing pricing or finding creative ways to get deals done through seller financing or offering concessions to buyers.

Recent Utah Multifamily Activity

Duplex in Salt Lake City

Built in 1970 with 2 units, 4 beds and 2 baths, 1430 sqft. Sold for $375,000. sold by: Canovo Group

Fourplex in Spanish Fork

Built in 1983, 12 beds, 4 baths, 4137 sqft sold for $887,500 with Cash. sold by: Comfort Realty

West Valley Duplex

Built in 1972, 7 Beds, ~3300 SqFt in West Valley City. Asking $579,000. Access Details Here. Listed by: Canovo Group

Turn-Key Fourplex

Built in 2019, 12 Beds, 12 baths, ~6700 SqFt in Eagle Mountain. Asking $1,350,000. Access Details Here. Listed by: Canovo Group

Considering selling your multifamily property? Request a free brokers opinion of value.

Headlines, Reports, and Articles

Surprising 2023 Market Predictions from National Association of Realtors Chief Economist. (nar.realtor)

Utah Home Builders Scramble to Make Deals Work with Buyers (kutv.com)

Rents Decline in 11 Major US Metros; Salt Lake City Rents Continue to Climb. (redfin)

This Week on The Lead Sponsor Podcast…

$700M in Self Storage & Mobile Home Parks; Unique Management Strategies; and Deep Value Add Self Storage Case Study - with Ryan Smith | TLS231

SHOW HIGHLIGHTS:

His background growing up in a real estate family
How he built an application for his Dad’s real estate company that eventually had 110k users around the world
How he started investing in Single Family in his early 20’s
Why he decided to move into Mobile Home Parks and Self Storage versus Multifamily.
What he looks for in his deals.
His unique management structure for his assets.
Case study of his deep value add deal in Las Vegas that he acquired for 11.3M in 2021 and recently appraised for 16M
His outlook in the current economy and how he is leading his company through it.

GUEST BIO:

Ryan Smith is the co-manager of multiple investment funds, which specialize in investing, both directly and indirectly, in mobile home parks and self-storage assets representing more than 20,000 units located in more than 25 states.

Mr. Smith graduated from the University of Tampa with a Bachelor of Science in Computer Science. An athlete, he was highly recruited for both baseball and basketball and was drafted as a senior in high school by the Baltimore Orioles, and again in college by the Anaheim Angels. Mr. Smith pursued his athletic talents by playing baseball throughout his college experience.

Mr. Smith currently serves on the board of Young Life College – UCF and is a member of the Advisory Board for the National Christian Foundation’s Orlando chapter. Mr. Smith lives in Orlando with his wife and four children.

LISTEN TO THE EPISODE NOW